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The move to the cloud continues: by 2025, more than half of corporate IT spending in key segments will be in the cloud

In 2025, enterprise IT spending on public cloud computing in key market segments will exceed spending on traditional IT solutions, according to new research from analyst firm Gartner.

Let us clarify that the field of view of the researchers included only those categories of corporate IT that can move to the cloud, within the markets of application software, infrastructure software, business process services and system infrastructure. By 2025, 51% of IT spending in these four categories is expected to shift from traditional to the public cloud, up from 41% in 2022. Nearly two-thirds (65.9%) of application software spending will go to the cloud in 2025, up from 57.7% in 2022.

In 2022, traditional offerings will account for 58.7% of revenue in these segments, but growth in traditional markets will be much lower than in the cloud. Demand for integration capabilities, flexible workflows, and composable architecture will further fuel the move to the cloud as long-term digital transformation and modernization initiatives are pushed to 2022.

According to Gartner, more than $1.3 trillion of enterprise IT spending related to the cloud transition is at stake in 2022, and will grow to nearly $1.8 trillion in 2025.

The move to the cloud continues: by 2025, more than half of corporate IT spending in key segments will be in the cloud